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2025 R44 Module 44.2

The document discusses the industry structure and competitive positioning using frameworks like Porter’s Five Forces and PESTLE analysis. It highlights the factors influencing competition, including rivalry, new entrants, substitutes, and customer and supplier power. Additionally, it outlines competitive strategies such as cost leadership, differentiation, and focus for achieving long-term economic profits.

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Ĺuke Shah
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3 views2 pages

2025 R44 Module 44.2

The document discusses the industry structure and competitive positioning using frameworks like Porter’s Five Forces and PESTLE analysis. It highlights the factors influencing competition, including rivalry, new entrants, substitutes, and customer and supplier power. Additionally, it outlines competitive strategies such as cost leadership, differentiation, and focus for achieving long-term economic profits.

Uploaded by

Ĺuke Shah
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Equity Investments

Industry Structure
and Competitive Positioning

Industry Structure and Competitive Positioning

Porter’s Five Forces


 The intensity of industry competition depends on:
 Rivalry among existing competitors
 Threat of new entrants
 Threat of substitute products
 Bargaining power of customers
 Bargaining power of suppliers

© Kaplan, Inc. 1

1
Industry Structure and Competitive Positioning

PESTLE
 Analysis of external factors affecting an industry can be done with
a PESTLE analysis broken down into these categories:
 Political
 Economic
 Social
 Technological
 Legal
 Environmental

© Kaplan, Inc. 2

Industry Structure and Competitive Positioning

Competitive Strategy and Position


 Effective strategies achieve consistent and positive economic
profits over the long run.
 Porter identifies three strategies that can be employed:
 Cost leadership (seek to have lowest production costs, offer
lowest prices, generate profits with volume sales)
 Differentiation (products should be distinctive in terms of type,
quality, or delivery)
 Focus (a niche market is targeted—could include aspects of
cost leadership and differentiation)
© Kaplan, Inc. 3

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